The ambitious initiative spearheaded by Donald Trump, known as the Board of Peace, intended to rejuvenate the war-stricken region of Gaza, currently shows an empty balance in its World Bank account. This is despite the collection of billions in membership fees. Launched by the former US president in January, the initiative called on global leaders, including those from Israel, Qatar, and Bahrain, to contribute $1 billion each for a “lifetime membership.” These countries, along with other member nations, collectively pledged $7 billion for a Gaza relief effort, while Trump assured an additional $10 billion from the United States. However, according to the Financial Times, the World Bank account remains devoid of any significant donations, as confirmed by four sources familiar with the situation. One insider revealed, “Zero dollars have been deposited.” It seems that donors have chosen to bypass the World Bank’s JP Morgan-managed account, which had United Nations backing, opting instead to channel funds directly to the US, a board official disclosed. This official stated that the Board of Peace has indeed gathered “significant funds.”
They explained, “From the outset, various channels have been available for fund transfers from contributing nations. So far, members have preferred alternatives to the World Bank channel, which remains one of several options at their disposal. There are no technical or operational discrepancies here. Funds are being vigilantly managed with oversight protocols to execute the mission entrusted to us by the President and UN Security Council Resolution 2803. Some countries have publicly disclosed their contributions; that is their prerogative, and we respect that. We will persist in our funding requests as needed, as more projects are initiated to improve Gaza’s conditions and bolster security and stability.” Out of the nine countries that committed funds, only Morocco and the UAE have deposited money into the JP Morgan-managed account. Morocco contributed approximately $3 million, while the UAE provided $20 million, which have been used to fund the office of Nickolay Mladenov, the appointed “high representative” for post-war Gaza, the Financial Times reports.
The financial contributions have also covered the wages of the Palestinian technocratic committee set up by the board to oversee the Gaza Strip. Additionally, the UAE pledged $100 million to establish a new police force for Gaza, though the initiative is yet to commence, and the funds remain on hold. Individuals familiar with the post-war Gaza reconstruction efforts confirmed that not a single US dollar has yet been allocated for rebuilding the area. Meanwhile, the US State Department plans to redirect roughly $1.2 billion in aid to projects associated with the Board of Peace, but these funds have not been utilized. “None of that money [has gone to the board]. None of that money is managed by the Board of Peace. And [the State Department] informs us there’s no intention to have any of that money managed by the Board of Peace,” a senior congressional aide informed the Financial Times. A board spokesperson mentioned that no contracts have been awarded so far, stating, “A lot of it is because we’re not operating in Gaza yet.” The Daily Mail has sought comments from the White House and the US State Department.
It comes as the European Central Bank recently warned that Trump’s war with Iran and unpredictable trade policies could spark a financial crisis. The conflict in the Middle East has put the resilience of the financial system ‘to the test’, ECB Vice President Luis De Guindos recently wrote in a biannual Financial Stability Report. ‘While the full impact of the war is unclear at this stage, the repercussions for the global economy and financial stability are becoming graver the longer it lasts,’ he said. The economic fallout from the Iran war has driven up inflation and damaged growth, but the ECB also blamed volatility in Trump’s trade policies. It also expressed concern that the US president is pulling Washington back from its traditional role of global leadership, exacerbating threats to the financial system. ‘Uncertainty surrounding the commitment of the US administration to multilateral co-operation is also increasing the risk that policy shocks will disrupt the international order and spur geoeconomic and regulatory fragmentation around the globe,’ the bank said. ‘Tariff announcements, pauses and reversals have become a structural feature of the global environment,’ it added.
The warning from the ECB comes after Trump said last week that a deal with Iran, including opening the Strait of Hormuz, has been ‘largely negotiated’. ‘Final aspects and details of the Deal are currently being discussed, and will be announced shortly,’ Trump said on social media on Saturday. He said he had spoken with leaders from Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Turkey, Egypt, Jordan and Bahrain, and separately with Israel. He described it as a ‘Memorandum of Understanding pertaining to PEACE’ that must be finalised by the US, Iran and the other countries that participated in the calls. Twelve weeks have passed since the US and Israel attacked Iran on February 28, killing top Iranian officials, including its supreme leader and interrupting nuclear talks between the US and Iran for the second time in less than a year.
Iran fired at Israel and at neighbours hosting US forces, shaking Gulf nations that had considered themselves safe havens in a tough region. Tehran’s decision to effectively close the Strait of Hormuz for ships carrying regional oil, natural gas and other critical supplies has been a focal point of global concern and economic pain. A ceasefire has held since April 7, but it was shaken on Monday when the US military said it had carried out ‘self-defence’ strikes in southern Iran, including on missile launch sites and boats placing mines. The strikes were done ‘to protect our troops from threats posed by Iranian forces,’ but the military was ‘using restraint during the ongoing ceasefire,’ Captain Tim Hawkins, the spokesman for the US military’s Central Command, said in a statement.
